Should I Wait to Sell my Home?
As the real estate market continues to soften and market transactions
become stagnant many home sellers are questioning whether they should wait to
attempt to sell their homes. Certainly, if sellers listen to media
reports, it would seem as though it is not an ideal time to attempt to
sell a home. While current statistics may not indicate that now is a
good time to sell, some home sellers are finding that it is not as difficult
as they thought to sell their properties. In many cases, ease of selling
in the current market depends on the type of house you are attempting
to sell, the location and the condition of the house. How well the
house is priced for the market can also play a large role in how long
it takes to move the property in existing market conditions.
Many sellers question whether it would be better to wait and put their
property on the market during a particular time of the year.
Traditionally, spring has been the season in which properties tend to
move the fastest. Along the same lines, the end of summer tends to see a
far lower volume due to families readying their kids for the back to
school rush. As many prospective buyers return from vacation in the
fall, there is frequently a small surge during that time of year.
Although a seasonal pattern can be detected to some degree, it must be
pointed out that these rules are not hard and fast. Factors such as the
supply and demand of properties in your local area and the state of
interest rates can impact how well properties sell during a particular
time of the year.
The inventory of home for sale in your local area can be one of
the biggest determining factors in how well your property may perform if
you do elect to place it on the market. While the surge in inventory
around the nation has been an indicator of slowing conditions across the
nation, there are still some pockets where inventories have not risen as
high. In these areas, market conditions are likely to remain active
provided interest rates remain somewhat low.
Therefore, it is a good idea to investigate your local market to
determine whether there is a current glut of properties before you place
your house on the market. When examining the local market be sure to
consider the number of properties that are in the same price range as
your property. Keep in mind that while there may be a glut of higher end
properties, your property may still have a chance of moving relatively
fast if there are not many properties available in the same price range.
If you are located in an area where the inventory is rather large then
you will likely find it more challenging to sell your house. As home buyers recognize there are plenty of properties from which they
can choose in these markets and thus feel no real urgency to buy
immediately. They often feel they have the luxury to wait until they
find a home that meets their exact needs.
A significant drop in interest rates could prove to ignite home buyers who
have been waiting; however. If buyers recognize a golden opportunity to
purchase a home that is well priced while obtaining a low interest
mortgage, activity could pick up. Without the stimulus of a low interest
rate and/or a low inventory; however, home sellers will need to provide some
type of incentive in order to motivate buyers.
Such an incentive could include paying a portion of the
buyer's closing costs or dropping the sales price. If you are not in a position where
you feel you can currently offer either of those incentives then
postponing a sale may be an option worth considering. Economists have
predicted the housing market could see a turnaround sometime in 2008 or
2009; however, these predictions cannot be guaranteed. It is entirely
possible the market could dip even further before an improvement is seen.
If you cannot wait until the market improves, take the time to make sure
your home is in excellent condition, study the market to know what you
are competing against and price it carefully for the existing market.
You may also see improved results investing more money in selling
tactics such as having the
home professionally staged for an open house.
Work closely with your agent to determine which advertising techniques
may provide the most benefits. In today's slow market, sellers who are
motivated to sell may need to become more active in the marketing of
their properties. You can read more
home selling tips in a cooling market here!
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